QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(OTCQX:QNMNF)
("Queenston or the Company") is pleased to announce results from 33
surface diamond drill holes (19,686 m) completed on the 100% owned
Upper Beaver property located in Kirkland Lake, Canada. The
drilling continues to build internal continuity as part of the
infill-resource upgrade program and further extends the Porphyry
Zone eastwards towards surface.
Highlights:
-- 231.4 g/t Au with 0.3% Cu over 2.0 m and 14.0 g/t Au with 1.4% Cu over
10.0 m (UB12-161W8) West Porphyry Zone
-- 9.8 g/t Au with 0.1% Cu over 20.0 m (UB12-75W3) East Porphyry Zone
-- 39.1 g/t Au over 5.0 m and 26.5 g/t Au over 4.0 m (UB12-210W2) East
Porphyry Zone
-- 30.5 g/t Au with 0.6% Cu over 4.0 m (UB12-75W2) East Porphyry Zone
-- 56.6 g/t Au with 2.9% Cu over 2.0 m (UB12-200W5) East Porphyry Zone
-- 12.2 g/t Au with 0.2% Cu over 6.0 m (UB12-247W2) Q Zone
-- 43.5 g/t Au over 1.0 m and 9.3 g/t Au over 4.0 m (UB12-236) East
Porphyry Zone
-- 28.6 g/t Au over 3.0 m (UB12-249) New Zone
-- 6.2 g/t Au over 8.0 m (UB12-222W3) Footwall Zone
-- 4.8 g/t Au with 0.2% Cu over 20.0 m (UB12-225W3) Footwall Zone
-- 8.1 g/t Au with 0.6% Cu over 6.0 m (UB12-247) Q Zone
-- 7.4 g/t Au over 5.0 m (UB12-243) East Porphyry Zone
-- 93.5 g/t Au over 1.1 m (UB12-238) East Porphyry Zone
-- 2.2 g/t Au with 0.7% Cu over 43.4 m (UB12-247W1) Q Zone
Accompanying this News Release are assay results (Table 1) and a
longitudinal section showing the location of the key drill holes
(Figure 1).
Charles Page, President and CEO of Queenston said, "We continue
to be impressed with the high-grade nature, width and continuity of
the mineralization within the core of the deposit as well as the
expanding footprint of this large gold-copper system. The deposit
remains open not only to depth but also both east and west. Six
drills continue to operate at Upper Beaver as we advance the
project towards underground exploration and feasibility. On site we
have excavated to bedrock and are preparing to drill-blast the
shaft collar in preparation for sinking the 1,300 metre deep,
circular shaft beginning next summer. In addition to the completion
of detailed engineering of the head frame, hoist house and
transformer station, we have also committed to the manufacturing
for three new hoists. Road improvements and power line installation
will continue throughout the fall and into the winter".
Porphyry Zones
Infill drilling on the East Porphyry Zone ("EPZ") included
thirteen new holes, all of which intersected significant
mineralization. At the -600 m elevation seven holes were completed
with key high grade intervals of 30.45 g/t Au with 0.63% Cu over
4.0 m (including 57.02 g/t Au with 1.17% Cu over 2.0 m) in hole
UB12-75W2, 9.81 g/t Au with 0.11% Cu over 20.0 m (including 27.49
g/t Au with 0.12% Cu over 5.0 m) in hole UB12-75W3, 76.90 g/t Au
with 0.82% Cu over 1.0 m in UB12-75W1, 43.48 g/t Au with trace Cu
over 1.0 m and 9.26 g/t Au with trace Cu over 4.0 m in UB12-236.
Drill hole UB12-244 intersected the Upper and Lower EPZ at the -660
m elevation returning values of 5.63 g/t Au with trace Cu over 5.0
m and 7.32 g/t Au with trace Cu over 4.0 m respectively. At 900 m
below surface two holes cut the zone assaying 3.01 g/t Au with
trace Cu over 5.0 m and 2.27g/t Au with trace Cu over 12.0 m
(including 10.01 g/t Au over 1.0 m) in UB12-225W3. Two high-grade
intervals in hole UB12-210W2 assayed 39.07 g/t Au with trace Cu
over 5.0 m (including 309.81 g/t Au over 0.6 m) and 26.50 g/t Au
with trace Cu over 4.0 m (including 34.78 g/t Au over 3.0 m). The
deepest intersection during this phase of drilling in the EPZ
returned a high-grade gold-copper intersection in hole UB12-200W5
assaying 56.56 g/t Au with 2.91% Cu over 2.0 m at a vertical depth
of 1,300 m.
In the West Porphyry Zone ("WPZ") infill drilling has also
intersected significant results. Hole UB12-161W8 cut two high-grade
Porphyry Zone intervals assaying 231.36 g/t Au with 0.25% Cu over
2.0 m and 13.97 g/t Au with 1.35% Cu over 10.0 m (including 68.41
g/t Au with 7.05% Cu over 1.5 m and 29.19 g/t Au with 1.63% Cu over
1.0 m) at approximately 1000 m below surface. Other WPZ
intersections completed near 500 m below surface include 2.67 g/t
Au with 1.72% Cu over 3.0 m (UB12-247), 7.99 g/t Au with 0.35% Cu
over 1.0 m (UB12-245), 2.86 g/t Au with 0.52% Cu over 3.0 m
(UB12-247W1) and three intervals in hole UB12-247W2 assaying 2.68
g/t Au with 0.54% Cu over 5.0 m, 20.15 g/t Au with 0.16% Cu over
1.0 m and 4.17 g/t Au with trace Cu over 2.0 m.
North Contact Zone
Drilling into the North Contact Zone ("NCZ") located in the
hanging-wall and north of the Porphyry Zone continues to intersect
broad zones of gold and copper mineralization highlighted by new
results that include 1.44 g/t Au with 0.15 Cu over 23.0 m and 1.69
g/t Au with 0.52% Cu over 10.0 m in UB12-237, 1.41 g/t Au with
0.21% Cu over 11.0 m and 4.73 g/t Au with 1.54% Cu over 3.0 m in
UB12-240, 1.38 g/t Au with 0.11% Cu over 35.0 m in hole UB12-245,
and 30.42 g/t Au with trace Cu over 1.0 m in UB12-247W2.
Q Zones
A series of holes that targeted the deeper WPZ also intersected
the closer to surface Q Zones ("QZ"). Holes UB12-247, -247 W1 and
-247W2 extended the QZ to depth with intersections of 29.21 g/t Au
over 1.0 m, 10.15 g/t Au over 1.0 m and 8.08 g/t Au with 0.58% Cu
over 6.0 m in UB12-247, 2.16 g/t Au with 0.68% Cu over 43.4 m
(including 5.87 g/t Au with 1.89% Cu over 6.0 m and 11.73 g/t Au
with 1.54% Cu over 2.0 m) in UB12-247W1, 12.19 g/t Au with 0.20% Cu
over 6.0 m in UB12-247W2. QZ infill intersections completed in this
phase of drilling are 23.75 g/t Au with trace Cu over 1.0 m in
UB12-245, 8.54 g/t Au over 1.0 m and 16.40 g/t Au over 1.0 m in
UB12-240.
Footwall Zone
The Footwall Zone ("FZ") was intersected in two holes at
approximately 800 m below surface. Hole UB12-225W3 returned a 20.0
m interval assaying 4.80 g/t Au with 0.19% Cu (including 97.16 g/t
Au with 1.59% Cu over 0.80 m) and UB12-222W3 intersected the zone
approximately 100 m above the interval in UB12-225W3 assaying 6.23
g/t Au with trace Cu over 8.0 m. Deeper in the FZ at -1350 m hole
UB12-200W7 deviated above the plunge of the FZ and intersected two
narrow 1.0 m intervals assaying 2.36 g/t Au with trace Cu and 2.54
g/t Au with 0.93% Cu. Here previously reported drill intersections
in the FZ include 7.5 g/t Au with 0.80% Cu over 36.0 m in hole
UB12-200W2, 6.00 g/t Au with 3.30% Cu over 10.0 m in UB12-200W3 and
18.4 g/t Au with 1.10% Cu over 22.0 m in UB12-200W4 (see news
Release dated September 5, 2012). The FZ continues to remain open
both up down plunge and to the east.
New Zones
Five holes drilled on the eastern portion of the deposit closer
to surface all encountered gold mineralization outside the existing
footprint of the mineral resource. This mineralization appears to
be related to the EPZ. Key intersections in this area that extend
the deposit are 7.37 g/t Au with trace Cu over 5.0 m (including
10.98 g/t Au with over 3.0 m) and 6.14 g/t Au over 2.0 m in
UB12-243, 93.50 g/t Au over 1.1 m in UB12-238, 9.71 g/t Au over 2.0
m in UB12-246, 28.6 g/t Au over 3.0 m in UB12-249 and 2.43 g/t Au
over 9.0 m in UB12-251.
About Upper Beaver
Historically the Upper Beaver mine has produced approximately
140,000 oz of gold and 12 million pounds of copper intermittently
from 1912 to 1971 from 526,678 t grading 8.31 g/t Au and 1.03% Cu.
Queenston has been exploring the property since 2005 and
established the first mineral resource in 2009. Since 2005, 353
diamond drill holes have been completed on the property
representing 222,524 m of drilling.
As a result of a positive Preliminary Economic Assessment
("PEA") prepared by P&E Mining Consultants Inc. of Brampton,
Ontario (see news release dated February 16, 2012) the Company
elevated the Upper Beaver project to Advanced Exploration leading
to feasibility. The PEA studied the economics of building a 2,000
tonne per day mine/mill complex at Upper Beaver that would produce
on average 120,000 oz of gold and 5.3 million pounds of copper
annually with first production targeted in 2016. The key permit to
sink a new 1,300 m deep shaft was received in September 2012 and
detailed engineering, procurement and shaft collar excavation have
commenced. The PEA incorporated the mineral resource at Upper
Beaver that was announced in May 2011 containing 3,074,000 t
grading 7.0 g/t Au (690,000 ounces ("oz") with 0.5% Cu (36.6
million pounds ("M lbs") (Indicated) and 3,093,000 t grading 6.2
g/t Au (616,000 oz) with 0.4% Cu (28.0 M lbs) (Inferred).
An updated mineral resource was announced on September 26, 2012
increasing the indicated resource by 112% to 6,870,000 t grading
6.6 g/t Au (1,461,000 oz) and 0.37% Cu ( 56 million pounds) and
increasing the inferred resource by 16% to 4,570,000 t grading 4.9
g/t Au (712,000 oz) and 0.32% Cu (32 million pounds) (inferred).
The updated mineral resource was completed by SRK Consulting of
Toronto, Ontario. A revised PEA incorporating the updated mineral
resource is in progress and anticipated to be completed in the
first quarter of 2013.
Exploration continues with six drill rigs and currently the site
is being prepared for shaft collar excavation including road
improvements and power line installation.
Quality Control
The design of the Queenston's drilling programs, Quality
Assurance/Quality Control and interpretation of results is under
the control of Queenston's geological staff including qualified
persons employing a QA/QC program consistent with NI 43-101 and
industry best practices. The Upper Beaver project is supervised by
Senior Geologist, Mark Masson, P.Geo. A detailed review of
Queenston's QA/QC procedures is filed in the 2011 Annual
Information Form on SEDAR. The drill core is logged and split with
half-core samples shipped to Swastika Laboratories of Swastika,
Ontario and analyzed employing the appropriate gold fire assaying
techniques. For QA/QC purposes the Company as well as the lab
submit standards and blanks every 25 samples. Approximately 5% of
sample rejects and/or pulps are sent to other laboratories for
check assaying. This news release was reviewed by Queenston's Vice
President Exploration and QP, William McGuinty, P.Geo.
About Queenston
Queenston is a Canadian mineral exploration and development
company with a primary focus on its holdings in the historic
Kirkland Lake gold camp comprising 230 km2 of prime exploration
lands. The Company's assets include six 100%-owned gold deposits,
all with NI 43-101 compliant mineral resources and ongoing
exploration. The objective of the Company is to advance the
flagship Upper Beaver project towards feasibility and production.
The Upper Beaver project is permitted for Advanced Exploration with
shaft collar excavation in progress leading to new shaft
development in 2013.
On November 12, 2012, Osisko Mining Corporation and Queenston
Mining Inc. announced a definitive agreement pursuant to which
Osisko will acquire, by way of a court-approved plan of
arrangement, all of the issued and outstanding common shares of
Queenston. The terms and conditions of the Agreement will be
disclosed in detail in the Management Information Circular which
has been filed and mailed to Queenston shareholders. Completion of
the transaction is targeted before year end and is subject to
customary conditions, including court approvals, a favourable vote
of at least 66 2/3% of the holders of Queenston common shares voted
at a special meeting of shareholders to be held on December 20,
2012 and the receipt of all necessary regulatory and stock exchange
approvals.
FORWARD LOOKING STATEMENTS
This news release may contain certain statements regarding
future events, results or outlooks that are considered forward
looking statements within the meaning of securities regulation.
These forward looking statements reflect management's best judgment
based on current facts and assumptions that management considers
reasonable and include the words "anticipate", "believe", "could",
"estimate", "expect", "intend", "may", "plan", "potential" and
"should". Forward looking statements contain significant risks and
uncertainties. A number of circumstances could cause results to
differ materially from the results discussed in the forward looking
statements including, but not limited to, changes in general
economic and market conditions, metal prices, political issues,
permitting, environmental, exploration and development success,
continued availability of capital and other risk factors. The
forward looking statements contained in this document are based on
what management believes to be reasonable assumptions however, we
cannot assure that the results will be compatible to the forward
looking statements as management assumes no obligation to revise
them to reflect new circumstances. The Corporation has no knowledge
that would indicate the information is not true or incomplete and
the Corporation assumes no responsibility for the accuracy and
completeness of the information. Readers should not place reliance
on forward looking statements. More information concerning risks
and uncertainties that may affect the Company's business is
available in Queenston's most recent Annual Information Form and
other regulatory filings of the Company at www.sedar.com.
To view the tables associated with this press please, please
visit the following link:
http://media3.marketwire.com/docs/QMI_Tables.pdf.
To view the map associated with this press release, please visit
the following link:
http://media3.marketwire.com/docs/QMI_Map.pdf.
Contacts: Queenston Mining Inc. Charles E. Page, P. Geo.
President and CEO (416) 364-0001 (ext. 224) Queenston Mining Inc.
David Donovan, CFA Director of Corporate Communications (416)
364-0001 (ext. 234) Queenston Mining Inc. Andreas Curkovic Investor
Relations (416) 577-9927Info@queenston.ca www.queenston.ca